Stock market today: Gift Nifty up 69 pt; key levels to look for Nifty, Sensex & Nifty Bank

Indian benchmark indices are set to open higher on Wednesday on the back of positive cues from the global market, led by in-line US inflation data overnight. Traders are awaiting the outcome of the Moscow-Washington meeting later this week. India's retail inflation also dropped to 8-year low, adding to the optimism.

Nifty futures on the NSE International Exchange traded 69.10 points, or 0.28 per cent, up at 24,624, hinting at a positive start for the domestic market on Wednesday. Asian stocks rose in the early session, while Japan hit new highs. Nikkei surged more than 1.36 per cent, while Hang Seng gained a per cent. KOSPI added half a per cent.

Globally, sentiment stayed cautious ahead of Friday’s high-stakes Ukraine ceasefire talks between US and Russia, said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. "We expect markets to remain in consolidation mode, supported by domestic buying interest, while tracking global cues from US tariff developments and the outcome of the US–Russia talks later this week."

Wall Street indices settled higher on Tuesday as July inflation rose broadly in line with expectations. The Dow Jones Industrial Average rose 483.52 points, or 1.10 per cent, to 44,458.61, the S&P 500 gained 72.31 points, or 1.13 per cent, at 6,445.76 and the Nasdaq Composite advanced 296.50 points, or 1.39 per cent, to 21,681.90.

The dollar weakened on Wednesday after a tame reading on US inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip over US institutions also undermining the currency. The dollar index last stood at 98.08, after falling roughly 0.5 per cent on Tuesday.

Oil prices were little changed on Wednesday after falling in the previous session after an industry report showed US crude stockpiles climbed last week illustrating the end of the seasonal summer demand period is nearing. Brent crude futures gained 3 cents to 66.15 a barrel. US West Texas Intermediate crude futures fell 3 cents to $63.14.

The decline reflects a lack of conviction among participants amid mixed cues, Ajit Mishra, SVP of Research at Religare Broking. "Select stocks across sectors are showing notable strength on the back of strong earnings and upbeat prospects. Participants should focus on these outperformers and avoid laggards while anticipating a rebound," he said.

Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 3,398.80 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 3,507.93 crore on a net-net basis.
 

Nifty & Sensex outlook

On the higher side, 24,570/80,500 would act as an immediate resistance zone. Above this level, the market could bounce back up to 24,700-24,775/81,000-81,200, said Shrikant Chouhan, Head Equity Research at Kotak Securities. "On the lower side, below 24,420/80,000, selling pressure is likely to accelerate. Below this level, the market could retest the levels of 24,350-24,250/79,800-79,500."

The 24340 level, where recent swing lows were registered, continues to be the support for the Nifty, said Nandish Shah, Deputy Vice President at HDFC Securities. "On the upside, today's high of 24702 will now act as a short-term resistance level," he said.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities said that the zone of 24360-24330 will act as immediate support for Nifty50. While on the upside, the zone of 24620-24650 will act as a crucial hurdle, he added.
 

Nifty Bank outlook

Nifty Bank weighed on overall market sentiment, witnessing a sharp decline. The index is currently at a critical juncture, with immediate support from the 100-DMA at 55,020 and resistance at 55,600, said Nilesh Jain, Head of Technical and Derivatives Research Analyst at Centrum Broking. "A decisive break below 55,000 could accelerate the decline towards 54,400," he said.

Nifty Bank formed a red candle, indicating weakness. On the downside, the 100-DEMA, is acting as strong support. As long as Bank Nifty holds above this level, a short-term pullback remains possible, said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates. "On the upside, the 34- DEMA hurdle near 56,050 will act as major resistance. Break below 54,950 could open the doors for 54,500 levels," he said.